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This is a Thanksgiving Week unlike any other, certainly different from anything I’ve experienced. I imagine the same applies to many of you.
At the same time, equity markets are celebrating what appears to be a commitment — or re-commitment — from the incoming Biden administration to accommodation.
That is, the prospect of Treasury Secretary Janet Yellen has Wall Street hoping, again, for significant fiscal stimulus, and soon.
That’s perhaps one reason why the Dow Jones Industrial Average is knocking on 30,000’s door, even as we gird for a day of giving thanks that’ll be as trying as any such holiday in living memory.
Some are foregoing travel, taking to Zoom for gatherings around computer screens. Others — many others, in fact — are proceeding as if it’s just another Turkey Day.
Still, rather than gearing up for joyful, bountiful meals with family and friends, we’re getting by the best we know how against the specter of a raging pandemic.
And that’s OK.
There should be no wonder, though, about the caution and even the sense of dread around this particular Thursday.
U.S. COVID-19 case counts are closing in on 200,000 per day. More than a quarter-million Americans have died of the virus. Hospitalizations recently topped 80,000, a grim record.
Most of us know someone personally who is (or has been) sick by now. Unfortunately, some of us also know folks who died of the disease.
But, still, even in these trying times — especially amid this week of giving thanks — we have reason for hope. We can and should look forward to better days, weeks and months ahead.
A big reason for that is down to our nation’s healthcare workers. Their courage on the front lines against a virulent enemy is worthy of all of our deepest thanks.
Now, with the promise of safe, effective vaccines to be distributed widely both here and abroad in 2021, there’s light at the end of the tunnel.
These are good reasons to be grateful. We’ve been through a lot in 2020, a year unlike any other in our nation’s history. And we will — as we have in the past — come out stronger on the other side of this set of challenges.
As unconventional, historic and stressful Thanksgiving 2020 may seem, when it comes to equity markets, not much has changed in the grand scheme of things.
President-elect Biden will be the next president, but it remains to be seen if the Democrats can flip the Senate in the Georgia runoff elections.
If so, we’ll likely see a monumental fiscal aid package pushed through in the new year. If not, the Federal Reserve will keep printing money and backstopping risk assets.
The economy will sputter along due to new COVID-related shutdowns and restrictions this winter. But Wall Street will do its best to look past that in the expectation of better times later in 2021.
All of that means prudent, time-tested “Safe Money” strategies are still your best bet for wealth generation and protection, come what may.
Finally, I wish you and yours a happy, safe and gratifying Thanksgiving.
Until next time,
Mike Larson
